Background

The Bureau of Industry and Security is amending the Export Administration Regulations to establish effective Aug. 11 additional nuclear nonproliferation controls on China and Macau, which the agency states are a response to China’s military modernization efforts, military-civil fusion strategy, and expansion of its nuclear forces.

This change specifically applies to items controlled for nuclear nonproliferation (NP) column 2 reasons, imposing a license requirement for NP2 controlled items destined for China or Macau. License applications for items controlled for NP2 reasons to China and Macau will be reviewed in accordance with the license review policies set forth in Section 742.3(b)(3) and (4) of the EAR.

According to BIS, these controls are being put in place to further allow the U.S. government to monitor the export of these items to assure that they are only being used in peaceful activities such as commercial nuclear power generation, medical developments, production of or use in medicine, and nonmilitary related industries. BIS adds that this rule does not change Macau’s status for purposes of the EAR, meaning that it will continue to be treated as a separate destination from China.

For more information on ensuring your company’s compliance with China export controls, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.

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